Quaterra announces private placement

Quaterra Resources Inc. has received conditional TSX Venture Exchange approval and is applying for AMEX approval of listing of such additional shares for a non-brokered private placement of up to US$12,800,000, or 4,000,000 Units at a price of US$3.20 per Unit.

All the common shares and warrants issued pursuant to the Offering will bear a legend restricting the shares from trading for a period of four months from closing and, in addition, will bear U.S. legending restricting sales except outside the U.S. in accordance with Rule 904 of Regulation S or in the U.S. in accordance with applicable U.S. securities laws and regulations. Closing is anticipated to occur imminently. Finders fees may be payable with regard to the sale of some of the Units comprising the Offering.

Each Unit offered will include one common share and one half share purchase warrant, with one full warrant exercisable to purchase one additional common share at US$4.20 per share for a period of 18 months from closing. The warrants will contain a provision that in the event the Company’s shares trade at a closing price of greater than US$5.50 per share for a period of 15 consecutive days at any time after six months from closing, the Company may accelerate the expiry date of the Warrants by providing notice to the shareholders thereof and in such case the Warrants will expire on the 30th day after the date on which such notice is given by the Company.

Proceeds of the offering will be used primarily to fund exploration and drilling programs at the MacArthur copper project in Nevada; uranium pipe targets on the Arizona Strip; and general corporate purposes.